Babu Mohan was born Kasturi Babu Mohan Rao in Andholu, Medak district, Telangana, India. His father was a teacher. He experienced problems from childhood due to his appearance, in spite of which he found employment in the government Revenue department. He left this job to pursue his interest in films.
Babu Mohan debuted in the film Ee Prasnaku Baduledi, followed by Ahuthi (directed by Kodi Ramakrishna), Ankusham and then a comedy character in Mamagaru. The last of these established his reputation as a comedian. After this film, Babu Mohan and Kota Srinivasa Rao developed a comedy partnership, for which many producers created special characters. The pair played in Mayalodu, Rajendrudu Gajendrudu and other films, the majority of which were directed by S. V. Krishna Reddy.
Babu Mohan also paired with Brahmanandam. Their films include Hello Brother, Varasudu, Allari Alludu, Pedarayudu, Paradesi, Appula Appa Rao and Jamba Lakidi Pamba.
Babu Mohan has been a staunch supporter of N. T. Rama Rao from his young days, and this led him to join the Telugu Desam Party (TDP). He became an MLA from Medak district Andole Constituency, serving as Social Welfare Minister in the TDP government. In the last two general elections, held in 2004 and 2009, he lost to the previous Deputy Chief Minister Damodar Raja Narasimha. He joined Telangana Rastra Samithi (TRS) and in 2014 General Elections he won the election on Damodar Raja Narasimha.